Banks Slow the Slow-Motion Melt-Up
https://trendmacro.com/system/files/reports/20110121TrendMacroLuskinFG.pdf
Friday, January 21, 2011
Misses at three big banks haven't changed the overall earnings outlook.
US Stocks
Earnings disappointments in the financial sector have slowed the slow-motion melt-up in stocks . But we don't expect much of a correction. We see no risk here to the fundamental idea of a march back to all-time high forward earnings and all-time high levels of the stock market.
US Financial Stocks
Misses by Bank of America, Citigroup and Wells Fargo have disproportionately dinged earnings season so far. But this is a sector-specific problem -- in a post-subprime post-Dodd/Frank world, there's a recovery model for the financials, but no growth model.